Trump Dismisses Dollar Decline as Great, Undermines Treasury
President Donald Trump dismissed concerns about the U.S. dollar’s sharp decline to its lowest level since early 2022, stating on January 27 that he believed the currency was “doing great.” Trump’s dismissal contradicts warnings from economic officials and markets about the dollar’s weakness and its potential negative effects on the American economy.
Treasury Secretary Bessent has advocated for a strong dollar as a cornerstone of U.S. economic policy, but Trump’s public comfort with currency depreciation undermines this official position. Trump’s statement to reporters in Iowa suggested he prioritized short-term trade advantages over the broader economic implications of a weakening dollar for inflation, savings, and purchasing power.
A weaker dollar historically increases import costs, contributes to inflation, and erodes the purchasing power of American consumers and savers. Economists have warned that sustained dollar weakness driven by unpredictable policymaking damages business confidence and complicates Federal Reserve efforts to manage price stability.
Trump’s inconsistent approach to currency policy reflects his pattern of dismissing expert guidance on economic matters. His public comments directly contradicted the Treasury’s official messaging, creating confusion in financial markets about the administration’s actual economic priorities and strategy.